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Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for portable game players are as follows: Apr. 1 Inventory 1 8 0 units at

Perpetual Inventory Using FIFO
Beginning inventory, purchases, and sales data for portable game players are as follows:
Apr. 1 Inventory 180 units at $40
10 Sale 140 units
15 Purchase 210 units at $42
20 Sale 170 units
24 Sale 60 units
30 Purchase 240 units at $46
The business maintains a perpetual inventory system, costing by the first-in, first-out method.
Question Content Area
a. Determine the cost of the merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column.
Perpetual Inventory Account
First-in, First-out Method
Portable Game Players
Date
Quantity
Purchased
Purchases
Unit
Cost
Purchases
Total
Cost Quantity
Cost of
Merchandise
Sold Cost of
Merchandise
Sold
Unit Cost Cost of
Merchandise
Sold
Total Cost
Inventory
Quantity
Inventory
Unit
Cost
Inventory
Total
Cost
Apr. 1 fill in the blank 65e2f1f5e052051_1
180
$fill in the blank 65e2f1f5e052051_2
40
$fill in the blank 65e2f1f5e052051_3
7,200
Apr. 10 fill in the blank 65e2f1f5e052051_4
140
$fill in the blank 65e2f1f5e052051_5
40
$fill in the blank 65e2f1f5e052051_6
5,600
fill in the blank 65e2f1f5e052051_7
40
fill in the blank 65e2f1f5e052051_8
40
fill in the blank 65e2f1f5e052051_9
1,600
Apr. 15 fill in the blank 65e2f1f5e052051_10
210
$fill in the blank 65e2f1f5e052051_11
42
$fill in the blank 65e2f1f5e052051_12
8,820
fill in the blank 65e2f1f5e052051_13
40
fill in the blank 65e2f1f5e052051_14
40
fill in the blank 65e2f1f5e052051_15
1,600
fill in the blank 65e2f1f5e052051_16
210
fill in the blank 65e2f1f5e052051_17
42
fill in the blank 65e2f1f5e052051_18
8,820
Apr. 20 fill in the blank 65e2f1f5e052051_19
170
fill in the blank 65e2f1f5e052051_20
40
fill in the blank 65e2f1f5e052051_21
7,140
fill in the blank 65e2f1f5e052051_22
40
fill in the blank 65e2f1f5e052051_23
42
fill in the blank 65e2f1f5e052051_24
16,000
fill in the blank 65e2f1f5e052051_25
40
fill in the blank 65e2f1f5e052051_26
42
fill in the blank 65e2f1f5e052051_27
1,680
Apr. 24 fill in the blank 65e2f1f5e052051_28
20
fill in the blank 65e2f1f5e052051_29
42
fill in the blank 65e2f1f5e052051_30
800
fill in the blank 65e2f1f5e052051_31
20
fill in the blank 65e2f1f5e052051_32
42
fill in the blank 65e2f1f5e052051_33
16,800
Apr. 30 fill in the blank 65e2f1f5e052051_34
240
fill in the blank 65e2f1f5e052051_35
46
fill in the blank 65e2f1f5e052051_36
11,040
fill in the blank 65e2f1f5e052051_37
20
fill in the blank 65e2f1f5e052051_38
42
fill in the blank 65e2f1f5e052051_39
800
fill in the blank 65e2f1f5e052051_40
240
fill in the blank 65e2f1f5e052051_41
46
fill in the blank 65e2f1f5e052051_42
11,040
Apr. 30 Balances $fill in the blank 65e2f1f5e052051_43
15,220
$fill in the blank 65e2f1f5e052051_44
11,840
Feedback Area
Feedback
Note that this exercise uses the perpetual inventory system. FIFO means that the first units purchased are assumed to be the first to be sold. Therefore, ending inventory is made up of the most recent purchases.
Question Content Area
b. Based upon the preceding data, would you expect the ending inventory to be higher or lower using the last-in, first-out method?
Lower
Feedback Area
Feedback
Consider the cost of inventory when purchased and when sold. Remember FIFO reports higher gross profit, net income, and ending inventory than the LIFO method when costs (prices) are increasing.
Feedback Area
Feedback
Partially correct

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